On The Money: Democrats closing in on massive infrastructure deal, but battle brews over tax hikes | What to know about the new child tax credit payments
Happy Monday and welcome back to On The Money, where we’re wondering what a financial version of a home run derby would be. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL—Democrats closing in on deal to unlock massive infrastructure bill: Senate Democrats indicated on Monday that they are close to a deal on a budget resolution that will pave the way for them to pass a sweeping, multi-trillion infrastructure bill along party lines later this year.
“The Senate Budget Committee is close to finalizing a budget resolution which will allow the Senate to move forward with the remaining parts of the American jobs and families plan,” Senate Majority Leader Charles SchumerChuck SchumerPride Month concludes without Equality Act vote in Senate Republicans should hit the reset button on Biden infrastructure deal The world is no longer fit for Sept. 11 war authorizations MORE (D-N.Y.) said, referring to President BidenJoe BidenEric Adams to meet with Biden on curbing gun violence: reports Democrats hit crunch time in Biden spending fight US troops in Syria come under ‘indirect fire attack’ MORE‘s two infrastructure proposals.
Schumer’s comments, made on the Senate floor, come as lawmakers are returning to Washington and the Senate leader is expected to meet as soon as Monday evening with a key group of Democrats to try to lock down the budget resolution.
The Hill’s Jordain Carney has the latest here.
Brewing battle over tax hikes to test Democratic unity: Even so, a brewing battle over tax policy is starting to heat up as lawmakers return to Washington for a crucial work period—when both of those issues converge.
- Schumer and Democrats on the Senate Budget Committee have discussed a $6 trillion reconciliation package that would include $2.4 trillion in tax increases and legislation to lower the price of prescription drugs that would save the federal government an estimated $600 billion over 10 years.
- Moderate Democrats, however, have raised concerns about various elements of Biden’s $2.39 trillion tax plan.
The Hill’s Alexander Bolton has more here.
LEADING THE DAY
What you need to know about the new monthly child tax credit payments: Millions of families will start to receive monthly payments from the IRS on Thursday, following the enactment of President Biden’s coronavirus relief law that included an expansion of the child tax credit.
- The $1.9 trillion relief measure from March increases the credit amount for 2021 and directs the IRS to make periodic advance payments of the credit through the end of the year so that families receive funds in installments rather than in a lump sum when they file their tax returns in 2022.
- Democrats say the expanded tax credit will help to substantially reduce child poverty, and the monthly payments will help families cover important expenses as they occur.
- Many Democratic lawmakers want to pass legislation later this year to make the one-year expansion of the credit permanent.
Here’s what you need to know about the monthly child tax credit payments—including how much they are, how long they’ll last, and what you need to do to get them—from The Hill’s Naomi Jagoda.
EU delaying work on digital tax proposal amid global talks: The European Union (EU) is delaying its work on a proposal for a digital tax, as it and other major economies around the world seek to reach a final agreement on a global tax overhaul by October.
A spokesperson for the European Commission, the EU’s executive arm, said in a statement Monday that the EU is focused on a successful conclusion of the multilateral tax discussions.
“For this reason, we have decided to put on hold our work on a proposal for a digital levy as a new EU own resource during this period,” the spokesperson said.
The background: The EU announcement comes after finance officials in the Group of 20 (G-20) on Saturday endorsed key aspects of an international tax framework aimed at addressing tax challenges of the digital economy.
- G-20 members, including the EU and the United States, are aiming to finalize a detailed implementation plan by October.
- U.S. policymakers have raised concerns about the EU’s work on a digital tax while the multilateral tax discussions are advancing. The U.S. has opposed jurisdictions acting unilaterally to impose digital taxes, arguing that they unfairly target American companies.
Naomi breaks it all down here.
ON TAP TOMORROW:
- The Senate Finance Committee votes on the nominations of Sarah Bianchi and Jayme Ray White to be deputy U.S. Trade Representatives at 9:45 a.m.
- The Senate Banking Committee holds a hearing on the nominations of Arun Venkataraman to be assistant Commerce secretary and Damon Smith to be general counsel of the Department of Housing and Urban Development at 10 a.m.
- A House Small Business subcommittee holds a hearing entitled “Rural American Recovery: The Role of Small Businesses and Entrepreneurship” at 1 p.m.
Tomorrow: Small Business Recovery: Minneapolis” — The Hill makes its next virtual stop on our Small Business Recovery road trip in Minneapolis. What support do minority-owned firms in the city still urgently need, and what opportunities at the federal and local levels are being created to help these businesses recover and thrive long-term? Feat. Rep. Angie Craig (D-MN), Minneapolis Mayor Jacob FreyJacob FreyMinneapolis officials voice concerns after video shows man shooting gun from car The Hill’s Morning Report: Afghanistan’s future now up to Afghans, Biden says On The Money: Business, labor groups endorse bipartisan infrastructure deal | Conservatives oppose IRS funding | Jobless claims rise, stocks fall MORE, and more. RSVP here.
Thursday, July 15: “Revitalizing America’s Cities” — As cities look to rebuild in a more inclusive and resilient manner, what role can microbusinesses play? On Thursday, July 15 at 1 PM, Miami-Dade County Mayor Daniella Levine Cava, Montgomery Mayor Steven Reed, Baltimore Mayor Brandon Scott, Dayton Mayor Nan Whaley, and more will join for a virtual conversation on how microbusinesses could re-energize our cities. RSVP here.
GOOD TO KNOW
- A key House subcommittee on Monday cleared a spending bill for the Department of Health and Human Services (HHS) without including a decades-old rider prohibiting funding for abortions, kicking off what is likely to be a long and bruising fight.
- White House officials sent a memo to state and local officials on Monday urging them to use funds from President Biden’s $1.9 trillion coronavirus relief package to reduce crime and combat gun violence at a time when U.S. cities are seeing a spike in violent crime.
- The average price of regular-grade gasoline has gone up by 5 cents in just the past two weeks, according to an analysis by The Associated Press.